The bounce is underway; and there is really not much to add in the way of commentary. The initial targets to watch can be seen via fibonacci relationships, moving averages and TD Trend Factor. The assault on the first area to monitor (around 1180) began with the final hour rally on Tuesday. Another (and perhaps more important) target to keep an eye on will be 1245. The short (red) moving average is sinking towards that level now.
At Monday's close the hourly chart had an unqualified break of the associated sequential buy risk level. This led to a rally attempt that stalled during yesterday's lunch hour. We then fell and actually broke the risk level (1127.87) in a qualified manner at 3pm. However, the break ended up being unconfirmed (higher low) as the bulls took charge during the closing hour. Result: the rally from extreme oversold conditions is on.
Bottom Line: The allocation mix meter is at +25%. Expecting an oversold rally to be followed by a retest of the low.
P.S. I will not be able to post Thursday morning.
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